You can see the various levels of strategies at the Corporate, SBU and Functional level. The levels of strategy offer you a glimpse of the complexity about different levels at which strategy is formulated. The business strategy must contain well coordinated action programs aimed at securing a long-term competitive edge and which should be sustained by the company.
Let’s take an example of Hindustan Levers, a multinational subsidiary, is in several businesses such as animal seeds, beverages, oils and dairy fat, soaps and detergents. Similarly Sundaram Clayton and its associate companies operate in technology areas as diverse as brake and signal systems for railways, two wheelers and electrical appliance. Three types of level are depicted in the exhibit.
The first level is the corporate strategy which is an overarching plan of action covering the various functions performed by different
Corporate Level
Take an example of any organization, there are basically three levels. The top level of the organization consists of chief executive office of the company, the board of directors, and administrative officers. The responsibility of the top management is to keep the organization healthy. You see that their responsibility is to achieve the planned financial performance of the company in addition to meeting the nonfinancial goals viz. social responsibility and the organizational image. The issues pertaining to business ethics, integrity, and social commitment are dealt with, at this level of strategic decisions. The corporate level strategies translate the orientation of the stakeholders and the society into the forms of strategies for functional or business levels.
In the given exhibit you will find that business strategy is a comprehensive plan providing objectives for SBU’S, allocation of resources among functional areas, coordination between them for optimal contribution to the achievement to the achievement of corporate level objectives.
Corporate Level Strategies
This is the level where vision statement of the companies emerges. Exhibit shows typical levels of strategy making in an organization.
In the given exhibit you will see that various companies are organized on the basis of operating divisions. These divisions are known as profit centers or strategic business units. Generally SBU’s are involved in a single line of business.
